Legal Question in Real Estate Law in California

Your question involves a rather recent, and substantial, modification to California law, giving borrowers who are in the process of having a loan modification application considered by their lender are protected from notices of default, notices of sale, and foreclosure (trustees') sales. Whether you are protected by these new laws and the best procedure for invoking their protection are matters that you should take up with a local real-estate attorney as a matter of utmost priority. There's a good chance you can escape eviction but you need to be very sure you are of firm legal ground and you need to act quickly. If you want, take a look at Civil Code sections 2924.10, 2924.18, 2924.19 and perhaps others in between, but more importantly find an attorney who is familiar with these relatively new (2012) additions to California law.

You are going to have to seek a stay of the unlawful detainer case while you have an action pending to set aside the foreclosure sale. As Mr. Whipple points out, you are going to need an attorney who is familiar with the laws governing foreclosure who can advise you as to whether or not the sale is valid.